Repairs, Rent & Insurance of Furniture and Plant & Machinery - Section 31 - Income Tax - Ready Reckoner - Income Tax

Repairs, Rent Insurance of Furniture and Plant Machinery - Section 31 Deduction is allowed in respect of: Revenue Expenses on repairs Insurance Premium On Plant Machinery and furniture used for the purpose of business or profession. Note: i. Capital expenditure on repair shall be added to the cost of plant machinery. ii. As per Supreme Court in Sri Mangayarkarasi Mills (P) Ltd. 2009 (7) TMI 17 - SUPREME COURT expenditure on replacement of old machinery by new machinery is not allowable as revenue expenditure and depreciation shall be allowed on the same. Other Relevant Information - Expenditure on replacement of dies moulds expenditure Worn out parts replacement expenses are allowed as current expenditure under section 31 . CIT, Chennai. Versus M/S. TVS Motors Limited 2019 (3) TMI 499 - Madras High Court Expenditure on replacement of part of composite machinery In case of replacement of part of composite machinery which functions independently, has substantial period of life identifiable and measurable cost then such replacement of part will be capitalized. The DCIT, Madurai. vs M/S. Ramco Industries Limited and M/S. Ramco Industries Limited vs ACIT, Circle 1, Virudhunagar. 2020 (2) TMI 921 - ITAT Chennai. Expense on abandoned project - For creation of Logo of the company , when no new intangible asset is formed must be treated as revenue expense as per section 37 of Income Tax Act, 1961 . It was held in the case Claridge Hotels Pvt. Ltd. versus DCIT, Central Circle-3, New Delhi 2022 (7) TMI 269 - ITAT Delhi.